Health Sector Trend Report, January 2017

Trend Reports |
January 26, 2017

In this January 2017 report, spending estimates are available through November 2016, while prices and labor are available through December 2016

Following are highlights from this month's report:

Based on data through November, health spending is on track for 5.4% annual growth in 2016, somewhat higher than the 4.8% growth projected for 2016 by the Centers for Medicare & Medicaid Services (CMS).

Looking at the most recent 2 months of data, October and November 2016, health spending slowed in late 2016 to 5.1%, with the prescription drug component dropping to 3.4% growth.

CMS has projected 5.1% growth in health spending for 2017 but this assumed a continuation of the Affordable Care Act (ACA).

The growth rate in health care prices increased during 2016 from 1.4% in Q1 to 2.1% in Q4.

Download the full report to view additional detail and analysis.

About Altarum's Health Sector Trend Reports

With funding from the Robert Wood Johnson Foundation, Altarum provides analysis of key trends in health care spending, prices, utilization, and employment. These reports make direct use of the Quarterly Services Survey (QSS), the timeliest source of detailed, survey-based spending information for health care services, which account for more than 70% of national health spending.

These trend reports are related to, but distinct from, Altarum's Health Sector Economic Indicators briefs, and were published monthly prior to Q1 2018.

In this January 2017 report, spending estimates are available through November 2016, while prices and labor are available through December 2016

Following are highlights from this month's report:

Based on data through November, health spending is on track for 5.4% annual growth in 2016, somewhat higher than the 4.8% growth projected for 2016 by the Centers for Medicare & Medicaid Services (CMS).

Looking at the most recent 2 months of data, October and November 2016, health spending slowed in late 2016 to 5.1%, with the prescription drug component dropping to 3.4% growth.

CMS has projected 5.1% growth in health spending for 2017 but this assumed a continuation of the Affordable Care Act (ACA).

The growth rate in health care prices increased during 2016 from 1.4% in Q1 to 2.1% in Q4.

Download the full report to view additional detail and analysis.

About Altarum's Health Sector Trend Reports

With funding from the Robert Wood Johnson Foundation, Altarum provides analysis of key trends in health care spending, prices, utilization, and employment. These reports make direct use of the Quarterly Services Survey (QSS), the timeliest source of detailed, survey-based spending information for health care services, which account for more than 70% of national health spending.

These trend reports are related to, but distinct from, Altarum's Health Sector Economic Indicators briefs, and were published monthly prior to Q1 2018.